At its South In an effort to lower the barrier to entry for many new investors, prominent developers in Dubai have begun offering units to prospective first-time homebuyers at discounted prices.
Garden project in Jebel Ali, Dubai’s Wasl Group began a new phase “with a significant commitment to first-time home buyers.”
“Wasl is granting registered first-time buyers exclusive early access to the units, along with tailored incentives such as discounted pricing,” the government-owned developer said. (Prices start from Dh550,000 for studios to Dh1.95 million for a 3-bed, according to property agents, and the launch comes at a time when Jebel Ali is getting a lot of buyer interest.)
In the interim. For first-time purchasers in Dubai, Binghatti is providing 5% off all of its projects “with no project or location restrictions.” As part of the July-launched Dubai “First-time Home Buyer” campaign, other top developers are soon to be asked to commit as well.
Heading into the final fourth months of the year, these discount-backed options will have a significant impact in extending the Dubai property boom, industry sources say. “If there are proper discounts and easier financing options, there will be buyers for sure,” said a developer source. “It will ease the concerns of these first-time buyers who would otherwise have waited until property prices cool down.”
Boost for Golden Visas
The new Dubai house buying incentive is also being intently watched by another group of real estate buyers: those who are applying for UAE Golden Visas. For the past three years, the 10-year visas have been a resounding success and are available to anyone who invests Dh2 million or more in real estate in the United Arab Emirates. However, a whole new generation of purchasers may appear as a result of the new Dubai program.
They still receive discounts on, say, a Dh2.2 million home, but they will still have to pay a minimum of Dh2 million. Additionally, there are discounts or waivers on a number of costs related to purchasing real estate.
“The new Dubai home owner incentive as a principle can help a younger demographic of residents,” said Matt Boyd, Business Development Manager at Sovereign Group.
“Or for those who otherwise might not be able to afford larger down payments. For instance,, those who would not easily have access to loans for properties worth Dh2 million.”
“A majority of residents always ask the question about their eligibility for a UAE Golden Visa. The bottom-line is that more residents want to stay longer and not have this to be dependent on job security.”
That is precisely what the Golden Visa offers: a longer-term guarantee for their visits to the nation.
The investor can apply for the Golden Visa under the existing system as soon as the Oqood sales registration is completed on a property for Dh2 million or more.
Dubai property prices go steady
Industry insiders believe that the current market cycle has peaked in Dubai real estate values. The offered rates do not much differ from what was available six months prior, notwithstanding the recent spate of offplan debuts. This is true in places like Jebel Ali, Al Jaddaf, and the Dubai Islands that are rapidly attracting more investors.
Additionally, this provides new investors with improved insight into price performance and the best way to divide their down payment and subsequent installments. For people who wish to apply for mortgages, price stability is also helpful.
Heavy demand for studios
Additionally, there is a greater than normal demand for studios and one-bedroom apartments, according to real estate market sources. Once more, this might be related to more new investors entering the local real estate market.
“It’s important to note that many investors may still focus on smaller units – driven by a desire to own property in Dubai rather than solely for Golden Visa eligibility,” said Yash Trivedi, founder of YOUAE Mortgages. “Overall, while the new Dubai first-home initiative will certainly influence demand for Golden Visas, the motivations of buyers may vary significantly.”
Buyers of real estate won’t care about this at all. Regardless of the format or price, they are successful as long as they sell a product.
It will also benefit Dubai’s effort for first-time homebuyers.
